Mid-range hotel brand Ibis will establish its largest Australasian hotel in the heart of Brisbane's CBD, the Lord Mayor announced on Tuesday morning.
Middle-East based hotel developer Action Hotels pic has been given the Brisbane City Council go ahead to construct the 368-room, $90 million project in Elizabeth Street.
It is the first foray of the Dubai three and four star hotel developer into Queensland market and only its second in Australia.
The company's growing property portfolio includes a Melbourne Ibis hotel but has so far largely been focused on the Middle East.
It has hotels in Kuwait, Oman and Jordan and an extensive list of future projects planned for Bahrain, the United Arab Emirates and Saudi Arabia.
The company's first Brisbane development is set to occupy a prime CBD location near the Myer Centre in Elizabeth Street.
Construction is scheduled to commence later this year.
Action Hotels Australian director, Andrew Nehme, said the company chose to invest in Brisbane due to its expansion potential.
"Economic and business growth forecasts indicate Brisbane is a city on the move," he said.
"Our experience here to date tells us the business-friendly environment that exists will help ensure our investment will be safe and our contribution to Brisbane's rapidly-expanding choice of hotel accommodation will be beneficial."
Lord Mayor Graham Quirk said the development would create more than 400 jobs during construction and 80 positions during operation.
"For the past two years our economic development board, Brisbane Marketing, has been spreading the strong message about Brisbane's hotel investment opportunities," Cr Quirk said.
"Brisbane has a very positive hotel investment pitch and continues to grow its reputation as a destination of choice for business, investment and major events."
The council has been working to tackle an identified undersupply of hotel rooms in the Brisbane inner city, particularly in the lead-up to November's G20 World Leaders Summit.
It offered a moratorium on fees to developers who submitted hotel plans until earlier this year, in a bid to stimulate the sector in Brisbane.
While the new Action Hotels development will not contribute to the G20, Cr Quirk said such developments were vital to continue attracting visitors to the city,
"This increased supply of hotel rooms improves our ability to attract visitors, as well as providing many new jobs and opportunities for local businesses," he said.
Action Hotels' hotel portfolio is largely operated by economy brands Ibis and Holiday Inn.
The Elizabeth Street development is scheduled to open in early 2016.
Brisbane hotels recently completed include:
- Gambaro Hotel, Caxton St, 75 rooms.
- Four Points by Sheraton, Mary St, 246 rooms.
- Alpha Mosaic Brisbane, The Valley, 51 rooms.
Brisbane hotels under construction include:
- Next Hotels and Resorts, Queen St Mall, 150 rooms.
- TRYP Hotel, The Valley, 65 rooms.
- Capri by Frasers, Albert St, 240 rooms.